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To The Future, BnK As the crypto lender drafts a recovery plan, its CEO expresses his support for Celsius

Bnk To The Future’s CEO and co-founder, Simon Dixon, made a statement giving his company’s support to troubled crypto lender Celsius.

BnK is willing to lend a hand

Dixon made it clear in his speech that his offer of support was based on his status as a Celsius shareholder and a major bitcoin proponent.

The crypto expert observed that the ongoing crisis at Celsius had a short-term systemic impact on bitcoin owners, implying that a solution was required.

For crypto issues, bottom-up solutions are the best

Since 2011, when the crypto market first witnessed a big collapse after the Mt. Gox scandal, in which about 850,000 bitcoin were stolen from the Tokyo-based crypto exchange, the industry has always relied on bottom-up solutions to recover from disasters, according to Dixon.

On their journey to recovery, he hoped Celsius and its CEO Alex Mashinsky would take a similar path.

Bitfinex has a long history

Dixon also emphasized his company’s role in assisting Bitfinex, a cryptocurrency exchange, recover from a severe security incident in 2016. The Bitfinex breach resulted in the loss of almost 120,000 BTC units, valued at over $72 million at the time.

Bitfinex halted all BTC withdrawals, deposits, and trading after the incident, and the losses were spread among all accounts, including those that had not been hacked.

After that, the crypto platform hired Simon Dixon and Bnk to The Future to develop a special purpose vehicle that allowed crypto exchange customers to trade their tokens for shares in Bitfinex’s parent company, iFinex, at a rate of $1 per token.

Traditional finance is ill-equipped to assist in the face of rising temperatures

While the Bnk To The Future CEO pledged to help the Celsius Network in any way he could, he also stated that the traditional banking system would not be able to provide a fast solution for Celsius, much like the Mt. Gox scenario, which has been unsolved for over a decade. In comparison, according to Dixon, bottom-up financial innovations were employed to remedy the Bitfinex catastrophe in under nine months.

Dixon’s statement comes after news that Celsius had hired Citigroup to help it with its turnaround.

According to rumors, Celsius has recruited Citigroup for an advisory position, which will entail Citigroup presenting prospective financing options for Celsius. On the other hand, the bank will make no direct capital contributions to Celsius.

Nexo Makes an Offer to Purchase Celsius Assets

Citigroup will assist the cryptocurrency lender in assessing proposals, including one from Nexo. Nexo formally approached Celsius with an offer to buy some of Celsius’s distressed assets after it indicated that the company was suffering liquidity concerns.

Nexo indicated that it was aware that Celsius was having trouble meeting its withdrawal requirements and that the findings pointed to the operation’s insufficiency even before the lender formally confessed it. As a result, Celsius’s business could not be sustained, according to Nexo’s findings.

According to Youwei Yang, director of financial analytics at StoneX, Celsius’s move to halt user withdrawals and transfers because of “extreme market conditions” triggered a panicked cryptocurrency market sell-off reminiscent of Mt. Gox’s disastrous bankruptcy.

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